Question

Thomas invests $103 in an account that pays 6 percent simple interest. How much money will Thomas have at the end of 4 years?

a) $122.67
b) $130.04
c) $127.72
d) $133.90
e) $121.54

Answer 1

c) $127.72

Step-by-step explanation:

Principal = $103

Interest rate = 6%

Annual interest = $103 x 6% = $6.18

If annual interest is $6.18, total interest in 4 years would be $6.18 * 4 = $24.72

Now we will add the total interest for 4 year to the principal to get the amount that Thomas will have at the end of 5 years.

= $103 + $24.72

= $127.72